ArcelorMittal profit grows 41% in Q2 2018

ArcelorMittal expects the current favorable market conditions to continue in the second half of 2018.
ArcelorMittal, the world's largest steel mill, posted strong results for the quarter and half year ending June 30, 2018. Profits rose significantly in the second quarter of 2018, mainly driven by higher sales and a higher selling price due to tariffs on imported steel.

The company reported net income of $ 1.9 billion in the second quarter of this year, up 56.4% from the previous quarter. Net income for the first six months of the year rose 31.5% to $ 3.1 billion. Operating income of $ 3.9 billion was up 32.5% from the prior year.

ArcelorMittal announced a consistent increase in steel supplies in all regions except Europe. The company attributed the drop in supplies in Europe to floods in parts of Europe and a rail strike in France.

Commenting on the result, ArcelorMittal Chairman and Chief Executive Officer Lakshmi N. Mittal said the encouraging set of results reflects a revival in both the global steel industry and ArcelorMittal. Trade activities in different countries have led to structural changes in the global steel industry. Tariffs have played a key role in restructuring the industry. In addition, Action 2020's five-year strategic plan also showed marked improvements in EBITDA and free cash flow, Mittal said.

ArcelorMittal expects the current favorable market conditions to continue in the second half of 2018. A leadership position in key markets will enable the company to benefit from a thriving market environment. At the same time, he noted that much needs to be done to fully address the problem of global overcapacity.